All limited companies registered in the UK are required to prepare financial accounts for Companies House and HMRC each year. These accounts are often referred to as ‘annual accounts’ or ‘statutory accounts’ and they are used to report the financial activity and performance of a business during its most recent financial year.
The financial year of a limited company is usually a 12-month period that ends on the ‘accounting reference date’ (ARD), which normally falls the anniversary of company formation. Annual accounts are also used to work out how much Corporation Tax a company has to pay to HMRC on its taxable profits.
We can take your existing accounts, or even envelopes full of invoices, receipts and bank statements, and produce the appropriate accounts for you. We'll also file these for you with Companies House and prepare your Corporation Tax return, attaching the right set of accounts to these. If you're a charity registered with the Charity Commission, we can take care of preparing and filingthese accounts as well.
All companies, whether trading or dormant (non-trading), must prepare accounts of some kind and provide copies to their members (shareholders or guarantors) and Companies House. Trading companies must also submit accounts to HMRC with each Company Tax (Corporation Tax) Return.
In general, there are 5 types of annual accounts for UK limited companies:
There are three classifications of company accounts for trading companies; small, medium and large. Within the small company classification there is a subset called micro-entity, which applies to very small companies. The size of a company is determined by various thresholds for annual turnover, balance sheet total, and average number of employees, each of which impacts the amount of accounting data required in the accounts.
All of our clients fall into the category of small, micro-entity or dormant companies, so we'll focus on these.
Here's the current criteria to use to decide which type of company yours is;
Micro-entities are very small companies. Your company will be a micro-entity if it has any 2 of the following:
If your company is a micro-entity, you can:
Your company will be ‘small’ if it has any 2 of the following:
If your company is small, you can send abbreviated accounts to Companies House. Abbreviated accounts are made up of the balance sheet from your company’s statutory accounts, along with any notes.
The balance sheet must have the name of a director printed on it and must be signed by a director.
Sending abbreviated accounts means less information about your company will be publicly available.
If your company is small, you can also:
Your company is called ‘dormant’ by Companies House if it’s had no ‘significant’ transactions in the financial year that you’d normally report. Significant transactions don’t include:
Dormant companies that qualify as ‘small’ only need to send Companies House abbreviated accounts and don’t need to be audited.
It is not possible to prepare and file micro-entity accounts if a business is, or was at any time during its financial year, one of the following:
A company can qualify as a micro-entity in its first financial year if it fulfils the conditions in that year. In subsequent financial years, the company must fulfil the conditions in that year and the year before. However, if a company that qualified as a micro-entity in one year no longer meets the criteria in its next financial year, it can continue to claim the exemptions available in the next year. If the company then qualifies as a micro-entity by meeting the criteria in the following year, the exemption will continue uninterrupted.
We're highly experienced in checking which type of company yours is, and therefore what accounting standards are appropriate to complete and submit your statutory accounts. We can ensure your accounts are compliant and represent a fair and accurate view, and we're able to provide an independent financial review if required by shareholders or charity Trustees.
We offer all clients:
Our all inclusive package for contractors and small businesses includes:
As your business grows, you can add on;